You answered your question in your original post. Remember the fallback is only used for physical outlets when the EB8 loses communications with the controller. Other than that, it's not used.
In your original program, while the time statement turned the outlet ON, there was nothing to turn it OFF. The Set OFF or some other statement that would turn it off the rest of the time was missing.
Separate from this however might be an issue with the outlet itself and the solenoid not drawing enough power for the outlet to function properly. The symptom will be the outlet turns off in the program but in fact physically stays on. Simple test is to move to outlet 4 or 8 or plug in something like a light instead. If it works, then that was the problem.